The California Housing Finance Agency (CalHFA) issued a press release last night stating that due to the successful sale of mortgage revenue bonds in California, money for CalHFA's down payment assistance program, CHDAP, should be released towards the end May.
CHDAP is a deferred payment, simple interest rate, junior loan of 3% of the sales price or appraised value, whichever is less. CHDAP may be combined with a CalHFA conventional loan program or a government first mortgage loan program like FHA or VA. CHDAP can be used for down payment assistance and/or closing costs.
I do not know any details yet (rate, loan amount, guidelines, etc.) but will forward them as soon as I know anything. Hopefully, it will still be a 3% down payment assistance (DPA) loan program where the payments are deferred for the life of the loan.
If this is the case, eligible borrowers will be able to pair this loan program with an FHA loan program for a combined loan to value (CLTV) of 95.5%. Eligible borrowers will then only need to come up with .5% for their share of the down payment. Be on the lookout for my announcement.
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